Walker Center Associates said Friday it has closed on the purchase of the Walker Center and announced plans for "significant renovations" that will upgrade the building to Class A office standards.

In a statement released Friday, Walker Center Associates confirmed it has purchased the building and adjacent parking garage, 175 S. Main, for an undisclosed amount from GP2B, a Washington-based company. Walker Center Associates is a group of private investors, the majority of whom are native Utahns or people with personal or professional interests in the state.

The planned renovations are expected to begin in mid-May, the company said, at a cost "approximately equal to the purchase price" of the building and will include both the 16-story main structure and parking garage. The work is expected to be complete by early 2007, at which time it will meet Class A office standards, Walker Center Associates said.

"As such, the Walker Center will serve as an alternative for tenants who expect 21st century amenities and a state-of-the-art facility in this prime central business district location," the company stated.

Vectra Management Group, a New York-based real estate investment firm, sponsored the company in buying the property. Details regarding the sponsorship were not disclosed. Vectra owns retail centers and office buildings, as well as industrial park land, in Salt Lake City, Layton, Ogden, Kearns and Park City.

The financing for the project includes a $2 million loan from the Salt Lake Redevelopment Agency, which the RDA approved in February. According to the RDA, planned renovations include upgrades to the building's heating, cooling and electrical systems.

"The loan was larger than normal, but they're a substantial company, and they had the capacity to pay," David Oka, executive director of the RDA, told the Deseret Morning News shortly after the loan was approved. "And for years, we've maintained our focus on Main Street, so that's another element that has contributed to their success in getting the loan. The loan will help them make improvements that will help them accomplish the upgrades they really need in order to make (the building) really efficient and leasable."

Accommodations will be made so current tenants of Walker Center will not need to vacate the building during the renovations, the company said.

James Wood, director of the Bureau of Economic and Business Research at the University of Utah, said Friday that news of additional Class A office space is welcome, particularly in Salt Lake's central business district.

"Everyone I've talked to, they all say the same thing: that there really is a very tight market for Class A office buildings downtown," Wood said. "Consequently, we've got buildings popping up all over the place — at The Gateway, the Hamilton Partners project (announced at 222 S. Main). This is more good news."